Buying Insurance while availing SBI MaxGain Home Loan

Hi Basavaraj, Landed in your forum from https://www.basunivesh.com/2015/04/07/all-about-sbi-maxgain-home-loan-scheme-features-and-benefits/. Really impressed with the advice you provide. Need your help regarding Insurance NOC. We had taken Maxgain home loan from SBI in 2012, as part of the loan we were told taking life insurance is mandatory and we ended up taking one RAKSHA insurance of 135000. Now, when we want to close the loan before the term we are being asked to pay the rest of the premium of 96,000. Also, we are being told that we may receive a very small amount back after we pay the remaining money. This came as a costly and absurd shock to us. Is it legal to deduct full life insurance premium? We had been misled and lied to regarding mandatory insurance. What can we do to not being

The first ILLEGAL thing they made is to buy you a Life Insurance product of THEIR CHOICE and second ILLEGAL thing is that now asking you to pay the remaining premium. Simply, ask them in writing of whatever they are claiming orally.

You sit in front of their chair. Inform them that either you need in writing or let your loan be closed as per your terms. If they not do both, you not move away from chair. They simply need some shock treatment from customers. Because they still feel we are for them and they not for us.